Monday, March 1, 2010

Amway Global - Passive Residual Income, An Amway Myth?

I recently had some discussion about the Amway opportunity and the ability for IBOs to build a stream of passive residual income. I would say that it's possible but highly unlikely. For one thing, how many diamonds or corwn ambassadors for that matter have "walked away" from Amway to jetset to beaches around the world?

I believe it is nearly impossible for IBOs to achieve this dream of income flowing into thei bank account after they leave Amway. I believe that this doesn't happen because most IBOs do not build a repeat customer base. On an Amway corporate blog, it was admitted that less than 5% of Amway goods are sold to non IBOs. Repeat customers, with a genuuine need for goods and services can lead to the possibility of repeat or residual income.

IBOs are trying to build an income that is dependent on keeping IBOs flowing through their business. But that is flawed since less than 1/3 os IBOs last only a year, and the vast majority of these same IBOs are gone in less than 5 years. You cannot build and maintain a business with residual income when people are coming and going. You would need a consistent customer base and a genuine need for these products and services.

I believe that the low sales to non IBOs, coupled with the fact that former IBOs do not appear to remain as loyal customers once the "dream" has faded away is a telltale sign that residual passive income from Amway is simply a myth that is used to promote the business. Why would any diamond ever quit or leave the business when he or she could simply collect check and bonuses month after month, year after year. I believe it is because there is no residual income as IBOs like to claim.


Anonymous said...

1 = 1, 2 = 4, 3 = 9, 4 = 16, 16 = 256, 256 = 65536, and on and on and on, it's only mathmatically possible and not possible in reality. again, and you will find that 99% will almost never have any real profits. It was that in 1993 when they first lured me to their meetings and it is still the same when they tried to loure me into their meetings again in 2010. A pyramid scheme is a pyramid scheme, no matter how you package it.

Anonymous said...

you may be right but one of my friend is enjoying the residual since last one year. due to some medical regions he is not working at all but income is growing though not very fast but still some growth